When is alt data illegal?

Alternative data or alt data is now fueling investment decisions at the world's leading private investment funds. So, when does the use of alt data violate securities laws? We asked a leading securities law expert Igor Rozenblit who previously led the private funds unit of the U.S. Securities and Exchange Commission (SEC).

Alt data includes internet scrapings, satellite data, app data, and other non-traditional investment information. Rozenblit explains when alt data qualifies as material non-public information (NMPI) and which securities laws are implicated in the misuse of MNPI. He goes on to share insights from SEC EXAMS actions and discusses the infamous App Annie case and what it means for private funds that use alt data to power investment decisions.

Igor Rozenblit is a securities law expert and previously served as the co-head of the private funds unit of the SEC.